Three Growth Areas To Focus On In 2020
Many leaders track growth by looking at revenue. When they're doing well, this can be a brag-worthy metric. However, if they fall short, it's easy to feel deflated. This year, try looking beyond money to assess your success.
Gene Hammett, a best-selling author and an international speaker, says that when leaders focus only on revenue, they're more likely to overlook opportunities to foster growth. While every year may not bring in record-breaking profits, nearly every year can result in high growth in one way or another.
In this issue of Promotional Consultant Today, we share Hammett's suggestions on what to focus on in 2020.
1. Referrals. Hammett says that referrals from clients are some of the easiest sales you can make—these people are primed to see you in a good light. Referrals from partners and vendors can also be great. They want your company to succeed so theirs will too. According to Hammett, there are many ways to boost your referral numbers. One way is by launching a campaign focused on referrals themselves. Put together collateral that your team can use to motivate people to refer others who could benefit from your products or services--even if they don't themselves. Provide an easy referral link in team members' signatures. Offer incentives to existing clients and extra services that are valuable to those making referrals to you. Remember that referrals are big motivators because they signal that your team is already doing something right.
2. Efficiency. When you're efficient, you make your dollars stretch farther. If your team isn't following high-efficiency procedures or using tools or technology to boost their productivity, you're giving competitors an edge, says Hammett. That can quickly negate any growth you've experienced and create long-term problems. Hammett advises leaders to track their team's performance in different areas to see where they can invest in efficiencies that will have long-term repercussions. Making employees' jobs easier is a huge motivator, and constant improvement shows prospects and clients that you take your work seriously.
3. Churn rates. Unlike the other metrics, you'll want to see this one go down. But this is great to track in terms of growth, notes Hammett. The fewer clients you lose, the less revenue you'll lose. It's also a self-fulfilling prophecy—if you keep clients on, you're more likely to attract those sought-after referrals. Reducing churn isn't easy, but it's worth the work. If you haven't already invested in client surveys, Hammett encourages you to use them in 2020. He also suggests taking a look at the metrics you already have. Do clients tend to leave at a certain time of year? Do you notice a drop-off at specific points, like after a big win or after not interacting with a real person for a certain period of time? Brainstorm how you can adjust those risk factors to reduce churn.
While you need revenue to stay in business, it's not the only metric worth growing. In 2020, look closely at how your team is doing in areas such as referrals, efficiency and churn. While some things are beyond their control, these things absolutely aren't—and they can fuel a lot more growth in the coming year.
Source: Gene Hammett is an international speaker who consults with companies to develop new strategies and leadership shifts. His podcast, Leaders in the Trenches, contains interviews of company leaders and experts about growth. Hammett is the best-selling author of The Trap of Success.